Reconveyance

Reconveyance is what happens when a borrower or home buyer pays off the loan for a piece of property that it owes to a bank or mortgage company and the bank then transfers complete ownership of the property to the homeowner. This is a very common situation as most homeowners today do not pay off a seller outright but instead have a financial institution pay the seller and then enter into a monthly payment agree with this institution that becomes the trustee of the property. The financial institution is often listed as the trustee of the property at the time of sale. Reconveyance is essentially the opposite of foreclosure. Reconveyance means that the buyer met all of the terms of the loan in full. The mortgage payment is essentially canceled, and the bank then reconveys the title and records the reconveyance.